News Summary
The University Health Palo Alto Hospital in San Antonio has marked a significant milestone with the installation of its final steel beam. The $550 million healthcare facility, expected to open in 2027, is part of a broader expansion effort that aims to improve healthcare services in an area projected to see a population surge. Led by Turner Construction Company, along with local partners, the hospital aims to enhance essential healthcare features within the rapidly growing South Side community.
San Antonio: Turner-Led Joint Venture Tops Out $550 Million University Health Palo Alto Hospital
The construction of the $550 million University Health Palo Alto Hospital in San Antonio is making significant progress, with the final steel beam recently placed in the structure. The project, which is expected to open its doors in 2027, is part of a broader initiative to expand healthcare services in a rapidly growing area.
The ambitious construction effort is led by Turner Construction Company, based in New York City, in collaboration with local partners Byrne Construction Services and project manager Straight Line Management. This joint venture emphasizes a commitment to enhancing healthcare facilities on San Antonio’s South Side, where the hospital is located.
University Health operates as a political subdivision of the state of Texas and is regarded as the only locally owned and operated health system in San Antonio and Bexar counties. The expansion includes the new Palo Alto Hospital, driven by the region’s projected population growth, which is anticipating to reach 3.2 million residents by 2030—a 28% increase from current estimates.
Planned Features of the New Hospital
The Palo Alto Hospital will serve as a comprehensive healthcare facility with numerous essential features planned. These include:
- A full-service emergency department
- Labor and delivery suites
- A neonatal intensive care unit (NICU)
- Operating rooms
- Inpatient rooms
- An attached medical office building
This multifaceted approach to healthcare provision is expected to significantly enhance the quality of services available to residents in the fast-growing region.
Further Developments in Healthcare Infrastructure
In addition to the Palo Alto Hospital, University Health is also constructing the Retama Community Hospital, located on San Antonio’s northeast side. This facility has a projected construction cost of $450 million and is being managed by Layton Construction from Sandy, Utah. The Retama Community Hospital is set to start with 140 inpatient beds, with potential to expand to 268 beds as demand increases.
Similar to the Palo Alto Hospital, the Retama Community Hospital will include a 24/7 emergency department and a labor and delivery unit, as well as a radiology lab, pharmacy, NICU, and various inpatient units. This expansion is projected to create over 1,000 jobs within three years of its opening.
Collaborative Efforts in Construction
Construction officials have highlighted the importance of collaboration among the Turner, Byrne, and Straight Line teams, along with various trade partners, in reaching the recent milestone of topping out the Palo Alto Hospital. This successful execution of construction plans reflects a well-coordinated effort to deliver high-quality healthcare facilities for the community.
Conclusion
The University Health Palo Alto Hospital, along with the Retama Community Hospital, is a testament to San Antonio’s commitment to meeting the healthcare needs of its growing population. By investing in state-of-the-art facilities, these projects aim to provide comprehensive healthcare services, thereby enhancing community well-being. Both hospitals are on track to begin operations in 2027, marking a significant advancement in San Antonio’s healthcare infrastructure.
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Additional Resources
- Construction Dive
- Wikipedia: San Antonio
- KSAT
- Google Search: University Health Palo Alto Hospital
- News4 San Antonio
- Google Scholar: Retama Community Hospital
- San Antonio Express-News
- Encyclopedia Britannica: Texas Health Infrastructure
- Engineering News-Record
- Google News: healthcare expansion San Antonio

Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.


